Louisiana House Bill HB772

Louisiana 2020 Regular Session

• Introduced: 3/31/20
• Refer: 5/4/20

Caption

Requires purchase from Louisiana vendors in certain circumstances (OR INCREASE GF EX See Note)

Impact

The enactment of HB 772 would result in a significant shift in the state's public procurement practices. This bill is designed to enhance local businesses' competitiveness by ensuring that Louisiana vendors have a fair opportunity to provide goods before the state resorts to federal supply options. The definition of 'comparable price' as within 10% of the federal price allows for cost-effective purchasing while still supporting local economies. Ultimately, this could lead to increased opportunities and revenue for Louisiana-based companies, promoting local jobs and economic growth.

Summary

House Bill 772 aims to prioritize Louisiana-based vendors in public procurement processes by prohibiting the use of the federal General Services Administration (GSA) supply schedules for purchasing goods under certain conditions. Specifically, when a product is available from a Louisiana vendor in sufficient quantity and at a comparable price, public entities must opt for the local supplier instead. This legislation seeks to stimulate the local economy by encouraging state and public entities to source their supplies from local businesses whenever feasible.

Sentiment

General sentiment around HB 772 appears to be positive among those advocating for local economic development, as it aligns with the ongoing trend of supporting local businesses and reducing dependency on external suppliers. Legislators and advocacy groups championing the bill emphasize the importance of nurturing the local market, especially in the wake of economic challenges faced by many small businesses. However, concerns may arise regarding the potential limitations this bill could impose on procurement options for public entities, especially if local suppliers cannot meet demand or maintain competitive pricing across all goods.

Contention

Notable points of contention arise regarding the feasibility of enforcing this bill effectively, particularly in instances where local vendors may lack the capacity or resources to fulfill larger orders that could be more readily sourced through federal supply schedules. Critics of the bill may argue that mandatory local purchasing could lead to increased costs for public entities, or that it could inadvertently restrict quality and availability in the procurement process. The balance between supporting local businesses and ensuring prudent fiscal responsibility remains a key topic of discussion in relation to HB 772.